Development of mining- affected regions: the influence of the Commonwealth in a state dominated sphere

Abstract

Introduction Since the nineteenth century gold rushes, mining has been significant in the development of population centres in regional Australia. Given this preFederation prominence and the extensive powers and responsibilities that lie with the states in Australia’s federal system, it is not surprising that most policies directly related to the extraction of minerals and on-shore oil and gas sit with state governments that have sovereignty over these resources. Nevertheless, the Federal Government can intervene in situations involving foreign affairs and trade; international agreements and conventions; Federal Government territory, properties and activities; taxation, financial management and redistribution; as well as cooperation between states and territories (Buhrs and Aplin 1999). Some Federal Government policies and legislation directly influence the resources industry which, in turn, impacts on regional areas. Such legislation includes the Environment Protection and Biodiversity Conservation Act 1999 (EPBC), Native Title Act 1993, and recently the Mineral Resource Rent Tax Act 2012 (MRRT). In addition, the Federal Government’s economic imperatives and responsibilities for national prosperity and development mean that general regional policy and socio-economic development programmes are relevant to mining-affected regions. Given these potential contradictions about responsibilities, there has been flux and at times confusion over the roles of various levels of government – and, indeed, other sectors – and the policy context for mining involves a complex interplay of factors at multiple levels. This chapter provides a background to the scale and significance of extractive industries in Australia’s regions and details some direct mining-related initiatives of the Federal Government. Primarily it profiles recent policy innovations that illustrate the indirect ways the Federal Government has influenced development in on-shore mining regions within the legal and administrative framework of a federation. Federal involvement is important to ensure that Australia’s mineral and energy resources are utilised to maximum advantage in the national interest and that possible negative ramifications for regional communities associated with resource developments are addressed. The chapter finishes by suggesting some priority policy areas in this respect.